Is seller required to disclose property not Freddie Mac Fannie approved?

UPDATED: Sep 30, 2022

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Is seller required to disclose property not Freddie Mac Fannie approved?

New construction or condo conversion projects
not yet approved by Fannie Mae/Freddie Mac,
does seller need to disclose this info to
potential buyer in writing?

Asked on October 27, 2016 under Real Estate Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, there is no affirmative obligation to disclose this information--that's for the buyer to determine, if he/she is looking for a Freddie/Fannie loan (or more generally, during the process of applying for a loan, if he/she needs one). Just make sure to not even imply that it is approved: while you don't need to disclose it, you also can't misrepresent the situation. Say nothing about this issue at all.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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